Travelers 2012 Annual Report Download - page 242

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
The Company has discretion regarding whether to provide additional funding and when to provide
such funding to its qualified pension plan. In 2012, 2011 and 2010, the Company voluntarily made
contributions totaling $217 million, $185 million and $35 million, respectively, to the qualified pension
plan. The Company has not determined whether or not additional funding will be made during 2013.
There is no required contribution to the qualified pension plan during 2013.
The following table summarizes the components of net periodic benefit cost and other amounts
recognized in other comprehensive income related to the benefit plans for the years ended
December 31, 2012, 2011 and 2010.
Postretirement
Pension Plans Benefit Plans
(in millions) 2012 2011 2010 2012 2011 2010
Net Periodic Benefit Cost:
Service cost ................................... $ 113 $98 $96 $— $— $ 1
Interest cost on benefit obligation ................... 138 135 128 12 13 14
Expected return on plan assets ..................... (187) (182) (185) (1) (1) (1)
Amortization of unrecognized:
Prior service benefit ........................... ——(3)———
Net actuarial loss (gain) ........................ 89 76 60 (1) ——
Net benefit expense .......................... $ 153 $ 127 $ 96 $10 $12 $14
Other Changes in Benefit Plan Assets and Benefit
Obligations Recognized in Other Comprehensive
Income:
Prior service benefit ............................. $— $— $— $— $— $—
Net actuarial loss (gain) .......................... 176 388 27 11 (5) (8)
Plan amendments ............................... ———(31) ——
Amortization of prior service benefit ................. ——3———
Amortization of net actuarial gain (loss) .............. (89) (76) (60) 1——
Total other changes recognized in other comprehensive
income ................................. 87 312 (30) (19) (5) (8)
Total other changes recognized in net benefit expense
and other comprehensive income .............. $ 240 $ 439 $ 66 $ (9) $7 $6
For the defined benefit pension plans, the estimated net actuarial loss that will be reclassified
(amortized) from accumulated other comprehensive income into net income as part of net periodic
benefit cost over the next fiscal year is $107 million, and there is no estimated prior service benefit to
be amortized over the next fiscal year. For the postretirement benefit plans, the estimated net actuarial
loss that will be reclassified (amortized) from accumulated other comprehensive income into net
income as part of net periodic benefit cost over the next fiscal year is less than $1 million, and the
estimated prior service cost to be amortized over the next fiscal year is $3 million.
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